#Morgan Stanley: March rate cut likely#

Morgan Stanley believes that while the recent US nonfarm payrolls report may reduce the likelihood of a Fed rate cut in the near term, the possibility of a rate cut in March remains high due to a more favorable inflation outlook. The firm believes that the downward trend in inflation gives the Fed more room to adjust monetary policy and expects the Fed to further lower interest rates in the coming months. While recent employment data may suggest that the economy remains strong, Morgan Stanley believes that the continued decline in inflation will be a key factor in the Fed's decision-making and ultimately drive a rate cut in March.